Viavi SolutionsVIAV -5.55%57 Gross Margin % is 57.55% as of Mar. 2026, which is 1% below its 10-year median of 58.15. GuruFocus rates VIAV with a GF Score™ of 57/100 and a GF Value™ of $13.13 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,450 Hardware companies, Viavi Solutions ranks better than 91.63% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Viavi Solutions had a gross margin of 57.55% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Viavi Solutions Gross Margin % Related Terms
Viavi Solutions Gross Margin % Historical Data
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The historical data trend for Viavi Solutions's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
VIAV vs ZBRA, AAOI, VSAT: Gross Margin % Comparison
For the Communication Equipment subindustry, Viavi Solutions's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Viavi Solutions Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Viavi Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Viavi Solutions's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Viavi Solutions (VIAV) has a Gross Margin % of 57.55% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Viavi Solutions and its competitors. This is near median its historical median of 58.15. Over the past decade, Viavi Solutions' Gross Margin % has ranged from 55.77 to 60.65. According to the industry distribution chart, Viavi Solutions ranks #205 out of 2450 companies in the Hardware industry, placing it in the top 8.4%.
Is Viavi Solutions' Gross Margin % too high?
Viavi Solutions' current Gross Margin % of 57.55% is near median its 10-year median of 58.15. Over the past 10 years, this metric has ranged from a low of 55.77 to a high of 60.65. The Hardware industry median Gross Margin % is 24.53. Viavi Solutions' value of 57.55% is 134.6% above this industry median. Based on the distribution chart, Viavi Solutions ranks #205 out of 2450 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Viavi Solutions has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Viavi Solutions' Gross Margin % compare to ZBRA and AAOI?
According to the Hardware industry distribution chart, Viavi Solutions ranks #205 out of 2450 companies for Gross Margin %. This places Viavi Solutions in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.53. Viavi Solutions' value of 57.55% is 134.6% above this benchmark. Historically, Viavi Solutions' own Gross Margin % has ranged from 55.77 to 60.65 over the past decade. While the company's 10-year median is 58.15 vs. the industry median of 24.53, Viavi Solutions has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,450 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Viavi Solutions's current Gross Margin % of 57.55% is 134.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Viavi Solutions and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Viavi Solutions's current Gross Margin % is 57.55%, which is near median its own 10-year median of 58.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Viavi Solutions stock overvalued right now?
Based on GuruFocus' analysis, Viavi Solutions (VIAV) is currently considered Significantly Overvalued. The stock's GF Value™ is $13.13, compared to a current price of $47.63 — trading 262.8% above its estimated fair value. The current Gross Margin % is 57.55%, which is near median its 10-year median of 58.15 and 134.6% above the Hardware industry median of 24.53. Viavi Solutions' overall GF Score™ is 57/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Viavi Solutions (VIAV), the current Gross Margin % is 57.55% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Viavi Solutions (VIAV) Overvalued in 2026?
Based on GuruFocus' analysis, Viavi Solutions stock appears to be overvalued.
The current stock price of $47.63 is trading 262.8% above its estimated GF Value™ of $13.13.
GuruFocus considers Viavi Solutions to be Significantly Overvalued.
Key valuation signals for VIAV:
Gross Margin %: 57.55% (near median its 10-year median of 58.15)
GF Value™: $13.13 vs. price of $47.63 (262.8% above fair value)
Industry Position: 134.6% above the Hardware median (#205 of 2450)
No single metric tells the full story. See the VIAV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Viavi Solutions Inc. is an international provider of network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, civil government, military and avionics customers. The company also offers high-performance thin-film optical coatings, providing light management solutions to anti-counterfeiting, 3D sensing, electronics, automotive, defense, and instrumentation markets. Its operating segments include Network Enablement, Service Enablement, and Optical Security and Performance Products. Geographically, it derives a majority of its revenue from the United States. Additionally, it manufactures and sells optical filters for 3D sensing products that allow facial recognition security authentication for mobile devices.
57GF Score
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